The new mining equipment is projected to achieve 7.1 EH/s of self-mining capability.
With this acquisition, Cipher can secure the price of mining equipment at $14 per terahash.
Cipher Mining (CIFR), a publicly listed Bitcoin mining company, is expanding its operations with a new massive acquisition of cryptocurrency mining hardware.
On December 18th, Cipher announced a new arrangement in which the company will purchase 37,396 Antminer T21 miners from Bitmain, a crypto mining behemoth based in China. Furthermore, according to the release, the new mining equipment is projected to achieve 7.1 EH/s of self-mining capability by the middle of 2025.
Banking on Bitcoin
The acquisition will let Cipher put up its first 135 MW at its recently purchased Black Pearl site, according to Cipher CEO Tyler Page. Furthermore, Cipher has the opportunity to purchase an extra 45,706 miners, or 8.7 EH/s, next year.
Moreover, with this acquisition, Cipher can secure the price of mining equipment at $14 per terahash (TH), which the CEO saw as a “very attractive” deal.
By making this investment, Cipher is showing that it anticipates the Bitcoin price to surge. Cipher allegedly inked a deal to buy a new location in Texas for $7 million in freshly issued common stocks in November 2023. Also, with a capacity of up to 300 megawatts, the facility is said to be ready for operation in 2025.
Additionally, Cipher has been quite active in purchasing new cryptocurrency mining hardware in 2023, snatching up 11,000 Canaan A1346 machines in May alone. American mining company Cipher Mining merged with Good Works Acquisition Corp., a company listed on the Nasdaq, for $2 billion in 2021 and then went public the following year.